The news comes just a month-and-a-half after the 33-year-old Holmes shocked the world by filing for divorce from her 50-year-old Top Gun hubby and seeking sole custody of their six-year-old daughter, Suri. The twosome formerly known as TomKat entered negotiations almost immediately and worked out a settlement in a matter of days, the details of which remained confidential.

A source close to Cruise tells E! News today that the actor is please that he is moving on from the divorce.

"Tom is very happy and relieved that he is moving forward," says the source, who's familiar with the terms of the deal. "His priority is being a good father and this settlement will make sure that continues."

Cruise and Holmes began dating in April 2005 and a month later the Mission: Impossible star proclaimed his love for the actress with his infamous Oprah Winfrey couch-jumping appearance. The pair tied the knot in Nov. 2006 in a lavish ceremony in Italy.